As disclosed in Goldstream's filing statement, Prodigy is a party to a "surplus security escrow agreement" with Goldstream and certain other shareholders of the company, under which the shares are held in escrow by a third party and released in stages over the course of 36 months.

Prodigy said five percent of the shares were released from escrow on Friday, adding that shares were acquired for investment purposes and it can increase or decrease its holdings from time to time as appropriate.

Last month, Prodigy Gold released an updated resource estimate at its Magino project in Wawa, Ontario.

Magino now hosts 6.1 million ounces at 0.9 grams per tonne (g/t) gold, which is a 56 per cent increase relative to the company's prior resource estimate at the property of 3.9 million ounces at 1.0 g/t gold.

In addition, 95 per cent of the resource now resides in the measured and indicated category, versus 56 per cent previously.

The new resource also contains a large proportion of gold resources above a grade of 0.50 g/t gold, which the company believes will provide a focus for mill head-grade optimization studies.

Prodigy said the higher grade material will likely support a mine plan that maximizes mill head grade, potentially lowering cash costs per ounce and improving project net present value.

The new resource will be included in a pre-feasibility study for Magino, expected early in 2013. Additional drilling is being planned to finalize the resource block model as part of the the study.